Office of the Chief Financial Officer

Executive Summary for Closed Reports

 

 

Original Report

Report No. IA:OTR:2907-C12: Management Alert: Internal Control Weaknesses Identified in OTR’s Processing of Receipts from the Collection Division’s Post Office Box, dated May 29, 2009.

 

Current Status

Closed.

 

Chief Risk Officer’s Risk Assessment

The risk associated with receipts from the post office box is Low due to the use of lockbox.  However, all OIO recommendations were considered.

 

Overview of Recommendations

OIO offered four recommendations. One was implemented to further strengthen existing internal controls.

 

• At least 90% of payments are processed through the lockbox, which necessarily provides a segregation of duties control.  For in-house mail, the incoming mail is received in the mailroom by one group, extracted in a separate room by another group and deposited by a third group.

 

One of the recommendations no longer applies- restrictively endorsing checks- as checks are deposited using a remote deposit system upon extraction in RPA. The Compliance Administration no longer receives checks directly from the POB.

 

Two of the recommendations were considered but deemed unreasonable. 

 

• OTR determined it was not reasonable to record taxpayer information at the point of initial receipt from the POB.  Mail pieces are tracked to ensure receipt into the process.
• OTR determined it was not reasonable to record payment information at the point of initial receipt from the POB.  Mail pieces are tracked to ensure receipt into the process.

 

To view the full report, click on OTR’s Processing of Receipts from the Collection Division’s Post Office Box